The growth of BioPharma Venture rounds in Japan
Multiple BioTech startups are spinning out from Hokkaido. Although global venture funding to biotech startups slowed in 2022 compared to the peak in 2021, several VCs are now targeting Japanese market and launching BioTech funds.
The Belgian VC firm Newton Biocapital launched a €150 million fund in February, 2022, and the American VC firm Arch launched $3 billion bio medical fund with eye on Japan in May 2022.
Last year, US and European venture investors partook in eight Japanese biopharma deals totaling €86.4M ($98M). This was almost triple the hauls from 2019 and 2020.
Reference : https://www.labiotech.eu/trends-news/newton-biocapital-vc-fund-japan/
SoftBank Group Corp. also decided to invest in Japanese BioTech startup, Pharma Inc. through its VC fund, Vision Fund in later 2021. Vision Fund has been investing in companies around globe such as the US, China and Latin America, but this is the very first investment in a Japanese company. (Reference : Jiji Press Ltd., October 29th, 2021)
Sapporo Innovation Fund
In 2021, the “first” fund amongst cities designated by government ordinance, Sapporo Innovation Fund was launched. LPs for Sapporo Innovation Fund are as follows, and they closed the fund with 750 million JPY.
- Ain Holdings Inc.
- Amino Up Co., Ltd.
- Sapporo Electronics and Industries Cultivation Foundation
- Digital Garage
- North Pacific Bank
- Northern Advancement Center for Science and Technology (NOASTEC)
- The Hokkaido Bank, Ltd.
- The Hokkaido Shimbun Press
- Hokkaido Shinkin Bank
- Moroo Inc.
The first startup that Sapporo Innovation Fund invested was EVEC, Inc. developing human antibodies by using EB virus. EVEC, Inc. has expertise in the development of therapeutic antibody, and is developing neutralizing antibodies against Omicron Subvariants. [crunchbase]
Fast growing BioTech startups spinning out from Hokkaido University
NB Health Laboratory Co. Ltd.
A pioneering BioTech company with expertise in the generation of functional antibodies targeting G protein-coupled receptors (GPCRs).
NBHL’s core business model is to provide the pharmaceutical industry with innovative drug candidates, including mAbs targeting GPCRs and small molecules. Through collaborations with pharmaceutical companies, NBHL operates its proprietary technology platform to run drug discovery programs according to specifications provided by its customers.
Corporate overview : https://nbhl.co.jp/aboutus.html
According to StratView Research,
“The Global G-Protein Coupled Receptors (GPCRs) Market is estimated to grow from USD 2.9 billion in 2020 to USD 4.2 billion by 2026 at a healthy CAGR of 6.7% during the forecast period. (reference)”
In April 2022, NBHL has completed 7.64 million USD of the Series C funding to advance pipeline of novel GPCR antibodies.
NB Health Laboratory Co. Ltd. : PitchBook profile
Official Website : https://nbhl.co.jp/
RAINBOW
Spinning out from the Department of Neurosurgery at Hokkaido University. Their proprietary HUNS001 technology is an autologous mesenchymal stem cell (MSC) product that is directly administered to the cerebral infarction. The intracerebral transplant treatment using HUNS001 is currently underway at Hokkaido University Hospital, targeting patients with cerebral infarction.
In 2020 RAINBOW raised in total of 150 million JPY from Okasan Capital Partners via OCP Investment Limited Partnership I, TSURUHA Drug, Inc., Hokuyo SDGs Promotion Fund, and D2 Garage.
RAINBOW Corporate profile
Official website : https://rainbowinc.co.jp/
LABbiotech
LABbiotech, spinning out from Hokkaido University has been pioneering Lactic Acid research, and launched a startup in 2020.
According to GRAND VIEW RESEARCH,
“The global lactic acid market size was valued at USD 2.9 billion in 2021 and is expected to expand at a compound annual growth rate (CAGR) of 8.0% from 2022 to 2030. (reference)”
LABbiotech has raised 59 million JPY via the third-party allotment, and continuously targeting investment in order to further collaborate with pharmaceutical companies and food manufacturers.
LABbiotech official website : https://lab-biotech.co.jp/
In June 2021, the government certified Hokkaido, Tsuruoka, Nagaoka, and Fukuoka as regional biocommunities (Science Japan). As more BioTech-focused global VCs are on the prowl in Japan for investment opportunities, BioTech startups will evolve and lead BioTech communities in Japan.